Globalization and Economic Restructuring Quiz

What is the primary reason companies engage in offshoring?

• To improve domestic infrastructure

• To reduce environmental impact

• To access cheaper labor markets

• To increase local employment

How do companies achieve economies of scale?

• By outsourcing all production

• By increasing the cost per unit

• By reducing the number of employees

• By purchasing better machinery and systems

What was a major consequence of economic restructuring in Detroit?

• Increased industrial growth

• Rise in urban blight

• Decrease in vacant buildings

• Improved public transportation

What is the main goal of special economic zones?

• To increase tariffs

• To restrict foreign investment

• To promote local agriculture

• To attract foreign investment

Which of the following is an example of a special economic zone?

• A national park

• A suburban residential area

• A maquiladora in Mexico

• A rural farming community

Which of the following is a characteristic of post-Fordism?

• Centralized production

• Mass production of standard goods

• Flexible production methods

• Strict division of labor

What is a key feature of just-in-time delivery?

• Increasing production waste

• Centralizing production locations

• Delivering materials only when needed

• Storing large inventories

How does agglomeration benefit businesses?

• By limiting access to labor

• By isolating them from competitors

• By increasing transportation costs

• By reducing overall costs through shared resources

What is a growth pole?

• A zone with high tariffs

• A rural area with limited infrastructure

• A center of economic growth

• A region with declining economic activity

What is the multiplier effect?

• The decrease in labor costs through outsourcing

• The increase in economic activity from an initial investment

• The reduction of costs through mass production

• The centralization of production processes